PARIS (Reuters) – Airbus has launched a performance improvement plan that includes cost cuts and a hiring freeze at its commercial aircraft division, which is struggling with production, industry sources said, citing a memo to staff.
An Airbus spokesman declined to comment on the note but confirmed the existence of a performance improvement plan.
In late June, Airbus lowered its total target for aircraft deliveries in 2024 to around 770 from around 800 previously due to difficulties in its supply chains.
The performance improvement plan, dubbed “Leap!”, plans to focus first on reducing unit costs and solving productivity problems.
Some jobs could be cut and the total number of positions will be capped, but the European planemaker is not planning any formal layoffs, commercial aviation division chief executive Christian Scherer said in the note, according to the sources.
The costs will be examined “without taboo” but the strategy remains unchanged, the manager added.
“Given the continued pressure on the supply chain and the complexity of the overall economic situation, it is necessary to focus our efforts on fundamentals,” the Airbus spokesperson said.
(Reporting by Tim Hepher, by Blandine Hénault)
Copyright © 2024 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
